Global commercial insurance prices increased by 18% in the first quarter of 2021, according to a report Tuesday from Marsh.
It was the 14th quarter in a row of price increases but the first to show a decline in the average rate of increase since the fourth quarter of 2017, as the increase in the first quarter was lower than 22% in the fourth quarter of 2020.
The decreased quarterly price increases seemed to be led by generally slower interest rate increases in property insurance and financial and financial
Global property insurance pricing increased by an average of 15%, less than the 20% increase during the fourth quarter of 2020. Prices for accidents in the first quarter increased by an average of 6% compared to 7% in the previous quarter.
Although financial and professional lines saw an average price increase in the first quarter of 40%, this decreased from 45% in the previous quarter.
However, cyber insurance prices continued to grow to 35% in the US from 1
This repeated comments from last week about the broker's first quarterly earnings call.
Price increases were also generally dampened over geographical areas. Prices for the first quarter in the US increased by 14%, down from 17% during the fourth quarter of 2020. In the UK, composite pricing increased by 35%, a decrease from 44% during the fourth quarter of 2020. Pacific increased by 29%, Marsh data showed a decrease of 35% during the fourth quarter of 2020.
Price increases are expected to continue to decline in general for the remainder of 2021, said Lucy Clarke, President, Marsh Specialty and Marsh Global Placement, in a statement with Report. "Although we will continue to see price increases in certain lines and the market as a whole will remain challenging for our customers, we expect price increases to continue to be measured," she said.